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Devon Energy profit beats estimates; capex lower than planned
October 31, 2017 / 8:41 PM / 24 days ago

Devon Energy profit beats estimates; capex lower than planned

(Reuters) - U.S. oil producer Devon Energy Corp (DVN.N) reported a bigger-than-expected profit in the third quarter, helped by higher realized prices for oil.

Net income attributable to the company fell to $228 million, or 43 cents per share, in the third quarter ended Sept. 30, from $993 million, or $1.89 per share, a year earlier.

Excluding items the company earned 46 cents per share beating the average analysts’ estimate of 38 cents per share, according to Thomson Reuters I/B/E/S.

Total revenue fell 25.4 percent to $3.16 billion.

Hurricane Harvey, which tore through southern Texas in September, forced Devon to temporarily suspended its Eagle Ford operations which reduced the company’s U.S. production by 15,000 barrels of oil equivalent per day (boe/d).

The company said total production, net of royalties, fell to 527,000 boe/d from 577,000 boe/d.

However, production was higher than the midpoint of the company’s Harvey-adjusted guidance by 6,000 boe/d.

Realized prices, including cash settlements, rose to $26.19 per boe in the reported quarter from $21.30.

Devon said its capital expenditures in the third quarter totaled $548 million, which was below the low end of guidance for the third consecutive quarter.

“Strong 3Q17 print and lower capital spend is a good set-up for the next year,” said Scott Hanold, analyst at RBC Capital Markets. Production of 527,000 boe/d was above RBC’s estimated 524,000 boe/d.

Oklahoma-based Devon revised its full year capital expenditure guidance to $2 billion to $2.1 billion from its previous range of $1.9 billion-$2.2 billion.

Reporting by Karan Nagarkatti and Anirban Paul in Bengaluru; editing by Shounak Dasgupta and Cynthia Osterman

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